Alex Thorn, head of research at Galaxy Digital, has dramatically lowered his year-end Bitcoin price target for 2025 from $185,000 to $120,000. That said, Thorn remains bullish on Bitcoin in the long term.
Large Bitcoin holders (“whales”) have been transferring coins to ETFs and institutional buyers.
A major leverage unwinding on October 10 caused a significant market drawdown, negatively affecting liquidity.
Moreover, Thorn has noted that capital and attention have rotated away from Bitcoin AI and gold, which have dramatically outperformed Bitcoin this year.
There is less new institutional investment directly into BTC. Rapid growth in stablecoins has redirected venture and institutional focus to fintech and payments infrastructure instead of Bitcoin.
The weakness of Bitcoin treasury companies also represents yet another bearish headwind.
Despite discussions, no government has announced Bitcoin reserve purchases (such as the proposed U.S. Strategic Bitcoin Reserve)
According to Galaxy, Bitcoin has now entered into its maturity era with low volatility and increasing dominance of institutional investors.
Hence, he expects the pace of price appreciation to eventually slow down.
